Hercules Technology Growth Capital Announces a Record Unrealized Gain of ~$23.0 Million through the Successful Completion of ...
29 January 2015 - 9:59AM
Business Wire
One additional Hercules portfolio company has
also successfully completed an IPO in January 2015
Hercules currently holds over 120 additional
warrant and equity positions which represent the potential for
additional future gains in our venture growth investment
portfolio
Hercules Technology Growth Capital, Inc. (NYSE:HTGC), the
leading specialty finance company focused on providing senior
secured loans to venture capital-backed companies in
technology-related markets, including technology, biotechnology,
life science, and energy & renewable technology, at all stages
of development, today announced a potential record unrealized gain
of approximately $23.0 million through the successful completion of
the Box, Inc. (NYSE: BOX), initial public offering which occurred
on January 23, 2015. The potential unrealized gain is based on the
closing price of Box shares on the trade settlement date of January
28, 2015. The unrealized gain may increase or decrease as the stock
price of Box moves up or down from its closing trade settlement
date price, thereby impacting the eventual Hercules’ realized gain
or (loss).
“The Box IPO is a powerful example of the potential additional
upside embedded in our existing warrant and equity investment
portfolio of various pre-IPO, pre-M&A and select public
companies,” stated Manuel Henriquez, chairman and chief executive
officer of Hercules. “Box’s successful IPO is a major achievement
for both Box and Hercules, and has the potential to represent the
largest single gain in our ten year history, depending on the price
of the shares when we exit the investment. We were early financial
supporters and investors in Box having invested in mid-2008, as
both a venture debt provider and an equity investor, as well as
supporting Box with multiple rounds of financing throughout its
growth as a private company.”
Henriquez added, “We believe 2015 is off to an encouraging
start, with two Hercules portfolio companies already having
completed their respective IPO offering, through January 28, 2015.
The two completed IPOs include Box and Zosano Pharma Corporation
(Nasdaq:ZSAN). Moreover, we have an additional six Hercules
portfolio companies that have filed registration statements in
anticipation of a potential IPO, some of which have filed
confidentially under the JOBS Act.”
With warrants and equity positions in over 120 different
pre-IPO, pre-M&A and select public growth companies, Hercules
has financed the industry’s largest Business Development Company
(BDC) investment portfolio focused on high growth, innovative, and
disruptive technology and life sciences venture backed companies,
further demonstrating the Company’s unique industry-leading direct
originations platform. Hercules intends to provide investors with
steady income in the form of a quarterly cash dividend and the
possibility to participate in the gains generated from some of
these successful venture-backed companies that may eventually
achieve a future IPO or M&A exit.
There can be no assurances that the companies in our
portfolio may ever realize an exit event such as an IPO
registration or M&A sale/merger in a timely manner or at all.
Many of our companies may require subsequent future additional
rounds of capital to continue to operate, and there can be no
assurances that future required capital to sustain their operations
will be secured, which may lead to a potential capital loss.
Additionally, many of our equity holdings, including shares we
hold in Box, are subject to certain restrictions that govern the
timing of our divestment and may thus impact our ultimate gain or
(loss). In the case of Box, we are subject to a customary
IPO lockup period and are obligated not to sell the shares of
common stock that we own for six months from the date of the
initial public offering.
About Hercules Technology Growth Capital, Inc.
Hercules Technology Growth Capital, Inc. (NYSE:HTGC) is the
leading specialty finance company focused on providing senior
secured loans to venture capital-backed companies in
technology-related markets, including technology, biotechnology,
life science, and energy & renewable technology, at all stages
of development. Since inception (December 2003), Hercules has
committed more than $4.6 billion to over 300 companies and is the
lender of choice for entrepreneurs and venture capital firms
seeking growth capital financing. Companies interested in learning
more about financing opportunities should contact info@htgc.com, or
call 650.289.3060.
Hercules’ common stock trades on the New York Stock Exchange
under the ticker symbol "HTGC."
In addition, Hercules has three outstanding bond issuances of
7.00% Senior Notes due April 2019, 7.00% Senior Notes due September
2019, and 6.25% Notes due July 2024, which trade on the NYSE under
the symbols “HTGZ,” HTGY,” and “HTGX,” respectively.
Forward-Looking Statements
Statements in this press release may constitute forward-looking
statements for purposes of the safe harbor protection under
applicable securities laws. Forward-looking statements can be
identified by terminology such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “intend,” “is planned,” “may,” “should,”
“will,” “will enable,” “would be expected,” “look forward,” “may
provide,” “would” or similar terms, variations of such terms or the
negative of those terms. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors including,
without limitation, those risks, uncertainties and factors referred
to in the “Risk Factors” section of the Hercules Annual Report on
Form 10-K for the year ended December 31, 2013, as well as the
other documents and reports filed by Hercules with the Securities
Exchange Commission. As a result of such risks, uncertainties and
factors, actual results may differ materially from any future
results, performance or achievements discussed in or implied by the
forward-looking statements contained herein. Hercules is providing
the information in this press release as of this date and assumes
no obligations to update the information included in this press
release or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Hercules Technology Growth Capital, Inc.Michael Hara,
650-433-5578 HT-HNInvestor Relations and Corporate
Communicationsmhara@htgc.com
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